DGAP-News: Steinhoff International N.V.

Steinhoff - Hemisphere real estate valuation
Steinhoff International Holdings N.V. (the "Company" and with its subsidiaries, the "Group")

The Company announced in December that it was investigating the validity and recoverability of certain non-South African assets and that it would be delaying the publication of its 2017 consolidated financial statements. It was further stated in the Company's quarterly trading update on 28 February 2018 that material additional impairments of certain assets may be required following further investigation by management and PwC.

In connection with such investigations, the finalisation of the audit for the 2017 consolidated financial statements and the strategic review being conducted by the Company, CBRE Limited ("CBRE") has been engaged by Hemisphere International Properties B.V. (an indirectly wholly owned subsidiary of the Company) ("Hemisphere") to undertake a valuation exercise in respect of the real estate interests of Hemisphere and its subsidiaries (such entities, the "Hemisphere Group" and such interests, the "Hemisphere Portfolio"). The Hemisphere Portfolio valued by CBRE comprises approximately 140 properties (including stores, warehouses, offices, production sites and vacant land) across Austria, Germany, the Netherlands, Switzerland, the UK and Eastern Europe. The majority of the properties across Austria and Eastern Europe are stores leased to KIKA-LEINER. The Hemisphere Portfolio excludes retail stores relating to the Harveys, Bensons for Beds, Conforama, Dealz, Pepkor Europe, Poco, and Poundland businesses which either lease properties from third parties or own retail properties in operating companies which do not form part of the Hemisphere Group.

On the basis of the assumptions adopted by CBRE, CBRE valued the Hemisphere Portfolio as at 1 February 2018 at approximately EUR1.1 billion. CBRE valued the properties on the basis of "Fair Value" (as defined in IFRS 13) and assuming vacant possession which disregarded internal leases to Company related entities and considered only leases between an external third-party tenant and the relevant Hemisphere Group entity.

The Company will consider CBRE's valuations in detail and will work with its auditors to determine the consolidated net book value of the Hemisphere Portfolio for the purposes of publication of the Company's consolidated financial statements for 2017. The Company considers it likely (in light of CBRE's findings) that the consolidated net book value of the Hemisphere Portfolio (once determined) will be materially lower than the EUR2.2 billion previously estimated by the Company and disclosed on its website in February 2018.

Stellenbosch, 3 April 2018